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Quick Tax Question - if anyone knows

  • 02-11-2007 11:45pm
    #1
    johnfás
    Registered Users, Registered Users 2 Posts: 1,342 ✭✭✭


    Was just wondering if anyone has a broad notion of the answers to this question.

    I have a friend who is currently being supported by various grants and donations from seperate individuals which amount to approx 25k. No donation from any one doner amounts to over 12k. Now he could be defined as providing some services for the doner of 12k but does not have a direct or defined employee relationship. Therefore, that anomoly aside it could be described as gifts amounting to approx 25k.

    Does anyone have any idea of the tax liability of the above or how to work it out?


Comments

  • #2
    boa-constrictor
    Closed Accounts Posts: 109 ✭✭boa-constrictor


    I assume that you are banking on the funds not being taxable if it is deemed a gift. I'm no expert but I think the following would apply;

    I believe he can call it a gift if he wants but the limit on the amount of a gift which can be received tax free from an unconnected person (not immediate family or related) is around 1,270 (I think) and he will be taxed on everything above that amount.


  • #3
    blorg
    Registered Users, Registered Users 2 Posts: 15,995 ✭✭✭✭blorg


    The 1,270 figure is a yearly exemption, beyond that there is a lifetime limit for gifts from any particular donor which is considerably higher (around €20k for unrelated persons, considerably higher still for relations.)

    See: http://www.revenue.ie/index.htm?/revguide/capitalacquisitionstax.htm

    If he is providing services however, all bets are off as it is not a gift.


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